The long-term liability section of Twin Digital Corporation’sbalance sheet as of December 31, 2017, included 10% bonds having aface amount of $50 million and a remaining discount of $1 million.Disclosure notes indicate the bonds were issued to yield 12%.Interest expense is recorded at the effective interest rate andpaid on January 1 and July 1 of each year. On July 1, 2018, TwinDigital retired the bonds at 103 ($51.5 million) before theirscheduled maturity. Required: 1. & 2. Prepare the necessaryjournal entries for Twin Digital on July 1, 2018. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field. Enter your answers in wholedollar.)
